Weekly Market Focus

Monday
Colombo equities started the weekly operation on a positive note ahead of the UNHCR sessions. Benchmark All Share Price index gained 8.95 index points or 0.13% to end at 7,162.44 while S&P SL 20 index advanced by 5.33 (+0.14%) to end at 3,919.61. Market turnover was LKR 697mn.

Tuesday
Colombo equities showed a lack of direction throughout the trading session on Tuesday and ended the day little changed. Investors hovered on the sidelines with little incentive to make a notable move as domestic economic concerns and possibility of fed rate hike weighed on the investor sentiment. The benchmark ASI closed at 7,152.43 with a drop of 10.01 index points or 0.1% while the liquid S&P SL 20 index closed at 3,915.13 with a decline of 4.48 points or 0.1%.

Wednesday
Colombo stocks lost further ground on Wednesday after trading in a narrow range as most of the investors remained hesitant to make big trades. The much anticipated Fed policy meeting, the domestic economic concerns along with the outcome of the UNHRC meeting are seemingly keeping the investors on the sidelines.

The benchmark ASI lost 15.03 index points or 0.2% to close at 7,137.40 while S&P SL 20 index closed at 3,899.63 with a drop of 15.50 points or 0.4%.

ThursdayColombo bourse extended losses for the third consecutive session amid domestic economic worries as the World Bank warned developing countries of a possible financial turbulence if US Fed decides to increase interest rates today.

The investors’ remain cautious on weakening rupee, high interest rates which dragged the index to the negative zone. Rupee was further pressured as the selling rate crossed LKR 143.00 level today with a year-to-date drop of 7.3%.

Benchmark All Share Price index lost 23.89 points or 0.33% to end at 7,113.51 while S&P SL 20 index lost 14.55 points or 0.37% to end at 3,885.08.

Kalamazoo Systems led the trades while Ceylon Grain Elevator, Office equipment and Sanasa Development Bank were among top trading counters for the session. Kalamazoo Systems recorded a fresh 52wk high price of LKR 4,440.00, +25%, but closed at LKR 3,980.00, +12%. Along with Kalamazoo Systems, the shares of Office Equipment advanced to a 52wk high price of LKR 2,864.00, +25%.

M T D Walkers announced a debenture issue of 25mn rated, senior, unsecured, redeemable debentures with an option to issue up to a further 5mn debentures at a par value of LKR 100.00 each to raise LKR 3bn. The debenture will be opened for subscriptions on 28th September 2015 and the prospectus would be delivered on 18th September 2015.

Bimputh Finance announced that the company has resolved to sub divide its shares in the proportion of 02 ordinary shares for every 01 share held.
• The Central Bank decision to limit the loan-to-value ratio of motor vehicle leases to 70% coupled with rise in vehicle prices dampened the interest in finance companies and most of the stocks closed with negative returns.

• In its efforts to reduce the interest rates, Central Bank rejected the bids for 6 months T-bills at the weekly auction held on Wednesday. The yields on 3 month & 12 month T-bills remained unchanged at 6.79% & 7.17% respectively. CBSL offered LKR 24bn worth of Treasury bills today and the auction was oversubscribed by 2.1 times with bids received amounting to LKR 50.6bn. It was decided to accept LKR 5.6bn worth of bills.